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"Until upcoming economic data makes the U.S. rate picture a little more clear, we believe gold is likely to remain stuck in choppy, directionless trading in the near term."
- HSBC (based on CNBC)
Pair's Outlook
It seems that Gold returned into the narrow range between two important technical levels, the 20 and 55-day SMAs. Yesterday, XAU/USD cross attempted to escape these boundaries and even climbed above weekly PP at 1,207. However, bullish impetus used to be weak enough to push the bullion considerably to the north and the price closed at 1,197 by the end of the day. As a result, Gold is likely to remain under 55-day SMA's pressure in the nearest future, thus our outlook remains bearish with a target at monthly PP (1,183) the next week.
Traders' Sentiment
Bulls have a substantial advantage over bears at the SWFX market, as they are holding 75% of all opened trades in the morning on Friday, a gain of two percentage points since yesterday. It represents the most optimistic SWFX sentiment in more than four weeks.
© Dukascopy Bank SA